Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21583

Clough Global Allocation Fund

(exact name of registrant as specified in charter)

1290 Broadway, Suite 1100, Denver, Colorado 80203

(Address of principal executive offices) (Zip code)

Abigail J. Murray, Secretary

Clough Global Allocation Fund

1290 Broadway, Suite 1100

Denver, Colorado 80203

(Name and address of agent for service)

Registrant’s telephone number, including area code: 303-623-2577

Date of fiscal year end:     October 31

Date of reporting period: November 1, 2014 – October 31, 2015


Table of Contents

Item 1.   Reports to Stockholders.


Table of Contents

LOGO


Table of Contents

 

 S ECTION  19(B) D ISCLOSURE

 

October 31, 2015 (Unaudited)

Clough Global Allocation Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund (each a “Fund” and collectively, the “Funds”), acting pursuant to a Securities and Exchange Commission (“SEC”) exemptive order and with the approval of each Fund’s Board of Trustees (the “Board”), have adopted a plan, consistent with each Fund’s investment objectives and policies to support a level distribution of income, capital gains and/or return of capital (the “Plan”). In accordance with the Plan, Clough Global Allocation Fund distributes $0.120 per share on a monthly basis, Clough Global Equity Fund distributes $0.115 per share on a monthly basis and Clough Global Opportunities Fund distributes $0.100 per share on a monthly basis.

The fixed amount distributed per share is subject to change at the discretion of each Fund’s Board. Under the Plan, each Fund will distribute all available investment income to its shareholders, consistent with each Fund’s primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a monthly basis, each Fund will distribute long-term capital gains and/or return of capital to shareholders in order to maintain a level distribution. Each monthly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential distribution rate increases or decreases to enable each Fund to comply with the distribution requirements imposed by the Code.

Shareholders should not draw any conclusions about each Fund’s investment performance from the amount of these distributions or from the terms of the Plan. Each Fund’s total return performance on net asset value is presented in its financial highlights table.

The Board may amend, suspend or terminate each Fund’s Plan without prior notice if it deems such action to be in the best interest of either the Fund or its shareholders. The suspension or termination of the Plan could have the effect of creating a trading discount (if a Fund’s stock is trading at or above net asset value) or widening an existing trading discount. Each Fund is subject to risks that could have an adverse impact on its ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, increased market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to each Fund’s prospectus for a more complete description of its risks.

Please refer to Additional Information for a cumulative summary of the Section 19(a) notices for each Fund’s current fiscal period. Section 19(a) notices for each Fund, as applicable, are available on the Clough Global Closed-End Funds website www.cloughglobal.com.


Table of Contents
Clough Global Funds    Table of Contents

 

 

 

 

Shareholder Letter

     2   

Portfolio Allocation

  

Global Allocation Fund

     5   

Global Equity Fund

     6   

Global Opportunities Fund

     7   

Statement of Investments

  

Global Allocation Fund

     8   

Global Equity Fund

     14   

Global Opportunities Fund

     20   

Statements of Assets and Liabilities

     27   

Statements of Operations

     28   

Statements of Changes in Net Assets

     29   

Statements of Cash Flows

     32   

Financial Highlights

  

Global Allocation Fund

     33   

Global Equity Fund

     34   

Global Opportunities Fund

     35   

Notes to Financial Statements

     36   

Report of Independent Registered Public Accounting Firm

     54   

Dividend Reinvestment Plan

     55   

Additional Information

  

Fund Proxy Voting Policies & Procedures

     56   

Portfolio Holdings

     56   

Notice

     56   

Shareholder Meeting

     56   

Section 19(A) Notices

     56   

Tax Designations

     57   

Trustees & Officers

     58   

Privacy Policy

     62   
 


Table of Contents
Clough Global Funds    Shareholder Letter
  

 

October 31, 2015 (Unaudited)

 

To Our Investors:

Clough Global Allocation Fund (GLV)

During the twelve months ended October 31, 2015, the Clough Global Allocation Fund’s total return, assuming reinvestment of all distributions, was 1.61% based on the net asset value and 2.57% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.41 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.37%.

Clough Global Equity Fund (GLQ)

During the twelve months ended October 31, 2015, the Clough Global Equity Fund’s total return, assuming reinvestment of all distributions, was 0.76% based on the net asset value and -0.98% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.36 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.53%.

Clough Global Opportunities Fund (GLO)

During the twelve months ended October 31, 2015, the Clough Global Opportunities Fund’s total return, assuming reinvestment of all distributions, was 1.13% based on the net asset value and 1.93% based on the market price of the Fund. The S&P 500 and the MSCI World Index returned 5.20% and 2.43% respectively over the same period. During the twelve months ended October 31, 2015, the Fund paid $1.19 per share in distributions. As of October 31st, the Fund had an annualized dividend distribution rate on the market price of 10.58%.

For the year ending October 31, 2015, the Global Allocation Fund finished up 1.61%, the Global Equity Fund finished up 0.76%, and the Global Opportunities Fund finished up 1.13%.

The Consumer Discretionary sector was the largest contributor to performance. Homebuilders such as DR Horton, jewelry retailer Signet, and theater operator IMAX were top contributors within the consumer sector. The Information Technology sector was also a significant help to performance including names like Salesforce.com and Facebook.

Our investments in some homebuilders have been profitable, but nowhere near the extent had we thought likely at this point in the cycle. They were up modestly in a strong tape this month. Disappointing pending home sales were reported for September, but that was due to supply shortages. Fundamentals at some companies in the field are strong, with major firms reporting double digit order

and backlog growth, and we still think pent up demand is likely to cause a breakout in single family housing activity in 2016 and 2017.

Detractors to performance were in the Energy and Financial sectors. Two holdings on the long side in Lumber Liquidators and Calpine also hurt performance. The Funds no longer hold the former but are sticking with the latter as we believe the fundamentals and cash flow generation are strong.

The short book was strong in the first half of 2015 as positions designed to benefit from a strong dollar and collapsing commodities markets outperformed. These positions became a drag in the last quarter when a sharp “snap back” rally in energy equipment suppliers and industrial commodity producers took back earlier profits. We believe these rallies won’t last. For one, the renewed raise in the dollar’s foreign exchange value only aggravates the deflationary world in which commodity producers exist. Industrial and precious metal prices have already reversed in a weak rally and many have declined to new lows. Profits for many of these companies are in secular decline.

Free cash flow is becoming a powerful stock selection tool on both the long and short sides. There are companies that generate excess free cash flow after funding dividends and capital spending requirements and there are those that do not. Those that do we call “compounders” – companies which can grow shareholder value year in and year out. We have seen any number of instances where companies facing fundamental decline have aggravated the destruction of shareholder value by leveraging to purchase shares at prices higher than what their stock sells for today. Many of the former, companies generating sufficient free cash flow to fund necessary capex and add to cash holdings, performed well. Interestingly, free cash flow is negative for the corporate sector as a whole so far in 2015, and companies which are taking on debt to support buybacks and dividends are typically moving onto our short/hedge list. The more the leveraged loan market comes under stress, the greater the short side opportunity becomes.

The comparable to free cash flow in the financial sector is excess capital and one holding in which we see that accreting is Citigroup Inc. The company is in a unique position of building excess capital while being able to buy back stock at a discount to its tangible book value. It also faces a market share opportunity as weaker competitive global banks shrink operations. Such examples include Standard Charter and Credit Suisse, both of whom recently announced capital raises and business restructuring. Deutsche Bank and Unicredit also announced staff and asset reductions.

Broadly speaking, our current short book is focused on industries in which we believe earnings will likely suffer from chronic industry overinvestment. Examples include energy, suppliers to smartphone manufacturers, and excess capacity in the European airline industry.

According to a Simmons & Co. analyst, dividend and capital spending by the major oil companies will exceed cash flow by $90 billion in 2015 even after all announced capital spending cuts. The most

 

 

 

2

 

 

www.cloughglobal.com


Table of Contents
Clough Global Funds    Shareholder Letter
  

 

October 31, 2015 (Unaudited)

 

vulnerable service companies we see are the deep water drillers. The companies must take delivery of excess rigs ordered during the period of higher oil prices but now face few new contract opportunities.

Finally, we still hold firm in our belief that we are in a low interest rate environment, regardless of the possible upcoming Fed rate hike in December. We are long duration in the form of 30 year US treasuries and will continue to build this position when temporary rise in yields provide an attractive entry point.

If you have any questions about your investment, please call
1-877-256-8445.

Sincerely,

 

LOGO

Charles I. Clough, Jr.

 

LOGO

Robert M. Zdunczyk

Past performance is no guarantee of future results.

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Allocation Fund, Clough Global Equity Fund and Clough Opportunities Fund are closed-end funds, which are traded on the New York Stock Exchange AMEX, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed end Fund is based on the market’s value.

The information in this letter represents the opinions of the individual Portfolio Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.

Tangible Book Value: Computed by deducting intangible assets, start-up expenses, and deferred financing costs from the firm’s normal book value (BV).

MSCI World Index: a stock market index of world stocks. It is maintained by MSCI Inc. and is often used as a common benchmark for world or global stock funds. The index includes a collection of stocks of all the developed markets in the world as defined by MSCI.

S&P 500 Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor’s 500 ® or S&P 500 ® .

It is not possible to invest directly in an index.

The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the fund’s portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.

 

 

 

Annual Report  |  October 31, 2015

 

 

3


Table of Contents
Clough Global Funds    Shareholder Letter
  

 

October 31, 2015 (Unaudited)

 

 

CLOUGH GLOBAL ALLOCATION FUND

 

Top 10 Equity Holdings*    % of Total Portfolio

1. Citigroup, Inc.

   5.61%

2. Bank of America Corp.

   4.48%

3. Liberty Ventures - Series A

   3.37%

4. Lennar Corp. - Class A

   3.23%

5. DR Horton, Inc.

   2.93%

6. American International Group, Inc.

   2.85%

7. Calpine Corp.

   2.57%

8. Starbucks Corp.

   2.54%

9. Roper Technologies, Inc.

   2.46%

10. Facebook, Inc. - Class A

   2.38%

CLOUGH GLOBAL EQUITY FUND

 

Top 10 Equity Holdings*    % of Total Portfolio

1. Citigroup, Inc.

   5.83%

2. Bank of America Corp.

   4.68%

3. Liberty Ventures - Series A

   4.05%

4. Lennar Corp. - Class A

   3.36%

5. American International Group, Inc.

   3.23%

6. DR Horton, Inc.

   3.05%

7. Calpine Corp.

   2.65%

8. Starbucks Corp.

   2.63%

9. Roper Technologies, Inc.

   2.56%

10. W.R. Grace & Co.

   2.53%

CLOUGH GLOBAL OPPORTUNITIES FUND

 

Top 10 Equity Holdings*    % of Total Portfolio

1. Citigroup, Inc.

   5.68%

2. Bank of America Corp.

   4.48%

3. Liberty Ventures - Series A

   3.41%

4. Lennar Corp. - Class A

   3.24%

5. American International Group, Inc.

   3.21%

6. DR Horton, Inc.

   2.94%

7. Calpine Corp.

   2.55%

8. Starbucks Corp.

   2.54%

9. W.R. Grace & Co.

   2.44%

10. Roper Technologies, Inc.

   2.44%

Holdings are subject to change.

*Only long positions are listed.

 

 

 

4

 

 

www.cloughglobal.com


Table of Contents
Clough Global Allocation Fund    Portfolio Allocation
  

 

October 31, 2015 (Unaudited)

 

Asset Allocation*     

 

Common Stock - US

   73.61%

Closed-End Funds

   3.46%

Common Stock - Foreign

   2.22%

Preferred Stock

   -0.48%

Exchange Traded Funds

   -16.79%

 

Total Equities

   62.02%

 

 

Government L/T

   12.97%

Corporate Debt

   7.22%

Asset/Mortgage Backed

   4.14%

Participation Notes

   2.87%

 

Total Fixed Income

   27.20%

 

 

Short-Term Investments

   9.90%

Other (Foreign Cash)

   1.02%

Warrant

   0.01%

Future

   0.01%

Total Return Swap Contracts

   -0.16%

 

Total Other

   10.78%

 

 

    

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

*  

Percentages are based on total investments, including securities sold short. Holdings are subject to change.

^  

Includes securities sold short and foreign cash balances.

 

US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.

Global Securities Holdings ^     

 

United States

   84.78%

China

   10.49%

U.S. Multinationals

   9.70%

Japan

   4.22%

Canada

   2.58%

United Kingdom

   2.24%

Hong Kong

   1.24%

Denmark

   0.16%

Other

   -15.41%

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

Annual Report  |  October 31, 2015

 

 

5


Table of Contents
Clough Global Equity Fund    Portfolio Allocation
  

 

October 31, 2015 (Unaudited)

 

Asset Allocation*     

 

Common Stock - US

   82.81%

Common Stock - Foreign

   3.97%

Preferred Stock

   -0.50%

Exchange Traded Funds

   -20.03%

 

Total Equities

   66.25%

 

 

Government L/T

   10.21%

Participation Notes

   2.97%

Corporate Debt

   1.89%

Asset/Mortgage Backed

   0.57%

 

Total Fixed Income

   15.64%

 

 

Short-Term Investments

   16.84%

Other (Foreign Cash)

   1.50%

Warrant

   0.01%

Future

   0.01%

Total Return Swap Contracts

   -0.25%

 

Total Other

   18.11%

 

 

    

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

 

*  

Percentages are based on total investments, including securities sold short. Holdings are subject to change.

^  

Includes securities sold short and foreign cash balances.

 

US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.

Global Securities Holdings ^     

 

United States

   85.26%

China

   11.37%

U.S. Multinationals

   9.85%

Japan

   4.91%

Canada

   3.30%

United Kingdom

   2.31%

Hong Kong

   1.73%

Denmark

   0.16%

Other

   -18.89%

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

6

 

 

www.cloughglobal.com


Table of Contents
Clough Global Opportunities Fund    Portfolio Allocation
  

 

October 31, 2015 (Unaudited)

 

Asset Allocation*     

 

Common Stock - US

   72.90%

Common Stock - Foreign

   2.19%

Preferred Stock

   -0.48%

Exchange Traded Funds

   -16.85%

 

Total Equities

   57.76%

 

 

Government L/T

   13.49%

Corporate Debt

   7.22%

Asset/Mortgage Backed

   4.49%

Participation Notes

   2.84%

 

Total Fixed Income

   28.04%

 

 

Short-Term Investments

   13.09%

Other (Foreign Cash)

   1.25%

Warrant

   0.01%

Future

   0.01%

Total Return Swap Contracts

   -0.16%

 

Total Other

   14.20%

 

 

    

  

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

 

*  

Percentages are based on total investments, including securities sold short. Holdings are subject to change.

^

Includes securities sold short and foreign cash balances.

 

US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.

Global Securities Holdings ^     

 

United States

   84.23%

China

   10.38%

U.S. Multinationals

   10.11%

Japan

   4.19%

Canada

   2.56%

United Kingdom

   2.22%

Hong Kong

   1.46%

Denmark

   0.16%

Australia

   -0.05%

Other

   -15.26%

 

TOTAL INVESTMENTS

   100.00%

 

 

 

 

 

Annual Report  |  October 31, 2015

 

 

7


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

 

 

    Shares     Value  

 

 

COMMON STOCKS 108.89%

   

Consumer Discretionary 28.06%

   

Diversified Consumer Services 3.10%

   

Service Corp. International (a)(b)

    45,700            $1,291,482   

Starbucks Corp. (a)(b)

    59,900        3,747,943   
   

 

 

 
      5,039,425   
   

 

 

 

Household Durables 5.59%

   

DR Horton, Inc. (a)

    146,926        4,325,502   

Lennar Corp. - Class A (a)

    95,200        4,766,664   
   

 

 

 
      9,092,166   
   

 

 

 

Internet & Catalog Retail 6.56%

   

JD.com, Inc. - ADR (a)(c)

    57,700        1,593,674   

Liberty Ventures - Series A (a)(b)(c)

    114,072        4,970,117   

NetFlix, Inc. (a)(c)

    5,100        552,738   

Priceline Group, Inc. (a)(c)

    1,764        2,565,279   

Rakuten, Inc.

    70,900        991,496   
   

 

 

 
      10,673,304   
   

 

 

 

Media 9.90%

   

AMC Entertainment Holdings, Inc. - Class A (a)

    63,300        1,732,521   

Comcast Corp. - Class A (a)(b)

    55,000        3,444,100   

IMAX Corp. (a)(b)(c)

    69,500        2,668,105   

Liberty Broadband Corp. -
Class A (a)(b)(c)

    12,528        683,528   

Liberty Broadband Corp. -
Class C (a)(b)(c)

    47,848        2,572,787   

Liberty Media Corp. - Class A (a)(b)(c)

    50,112        2,042,565   

Liberty Media Corp. - Class C (a)(b)(c)

    48,424        1,895,799   

Lions Gate Entertainment Corp. (a)

    27,400        1,067,778   
   

 

 

 
      16,107,183   
   

 

 

 

Specialty Retail 2.06%

   

Signet Jewelers, Ltd. (a)(b)

    22,150        3,343,321   
   

 

 

 

Textiles 0.85%

   

Carter’s, Inc. (a)

    11,700        1,063,296   

Samsonite International S.A.

    106,500        315,353   
   

 

 

 
      1,378,649   
   

 

 

 

TOTAL CONSUMER DISCRETIONARY

      45,634,048   
   

 

 

 

Consumer Staples 0.34%

   

CVS Health Corp. (a)

    5,600        553,168   
   

 

 

 

Energy 4.85%

   

Anadarko Petroleum Corp. (a)

    19,800        1,324,224   

Concho Resources, Inc. (a)(c)

    12,500        1,448,875   

 

    Shares     Value  

 

 

Energy (continued)

   

Devon Energy Corp. (a)

    26,300            $1,102,759   

EOG Resources, Inc. (a)

    11,300        970,105   

Fairway Energy Partners LLC (c)(d)(e)

    130,700        1,323,337   

Pioneer Natural Resources Co. (a)

    12,500        1,714,250   
   

 

 

 
      7,883,550   
   

 

 

 

Financials 28.75%

   

Business Development Corporations 1.74%

   

Ares Capital Corp. (a)

    118,300        1,801,709   

Golub Capital BDC, Inc. (a)

    63,100        1,032,947   
   

 

 

 
      2,834,656   
   

 

 

 

Capital Markets 3.72%

   

Atlas Mara, Ltd. (c)(e)

    183,658        1,101,948   

Daiwa Securities Group, Inc.

    48,000        330,992   

Goldman Sachs Group, Inc. (a)(b)

    9,800        1,837,500   

Morgan Stanley (a)(b)

    84,487        2,785,536   
   

 

 

 
      6,055,976   
   

 

 

 

Commercial Banks 1.48%

   

First Republic Bank (a)

    14,900        973,119   

Mitsubishi UFJ Financial Group, Inc.

    86,800        568,692   

Mizuho Financial Group, Inc.

    271,100        562,330   

Sumitomo Mitsui Financial Group, Ltd.

    7,600        306,091   
   

 

 

 
      2,410,232   
   

 

 

 

Diversified Financials 9.88%

   

Bank of America Corp. (a)(b)

    393,991        6,611,169   

Citigroup, Inc. (a)(b)

    155,730        8,280,164   

JPMorgan Chase & Co. (a)

    18,200        1,169,350   
   

 

 

 
      16,060,683   
   

 

 

 

Insurance 3.02%

   

American International Group, Inc. (a)(b)

    66,700        4,206,102   

Ping An Insurance Group Co. of China, Ltd. - Class H

    126,000        709,609   
   

 

 

 
      4,915,711   
   

 

 

 

Real Estate Investment Trusts 5.14%

   

Healthcare Trust of America, Inc. - Class A (a)

    51,500        1,354,965   

Ladder Capital Corp. (a)

    50,204        715,909   

PennyMac Mortgage Investment
Trust (a)

    106,414        1,555,773   

Starwood Property Trust, Inc. (a)(b)

    154,400        3,101,896   

Two Harbors Investment Corp. (a)

    191,791        1,622,552   
   

 

 

 
      8,351,095   
   

 

 

 
 

 

 

8

 

 

www.cloughglobal.com


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

 

    Shares     Value  

 

 

Financials (continued)

   

Thrifts & Mortgage Finance 3.77%

   

MGIC Investment
Corp. (a)(b)(c)

    363,734            $3,419,100   

Radian Group, Inc. (a)(b)

    187,500        2,713,125   
   

 

 

 
      6,132,225   
   

 

 

 

TOTAL FINANCIALS

      46,760,578   
   

 

 

 

Health Care 13.87%

   

3SBio, Inc. (c)(e)

    3,500        3,969   

Acceleron Pharma,
Inc. (a)(c)

    14,200        443,182   

Akorn, Inc. (a)(c)

    40,400        1,080,296   

Albany Molecular Research,
Inc. (a)(c)

    45,500        820,820   

Allergan PLC (c)

    3,100        956,257   

AstraZeneca PLC - Sponsored ADR (a)

    15,436        492,254   

Bristol-Meyers Squibb
Co. (a)(b)

    10,087        665,238   

Cardiome Pharma
Corp. (a)(c)

    139,500        1,139,715   

Cerner Corp. (a)(b)(c)

    11,600        768,964   

Cigna Corp. (a)

    10,800        1,447,632   

Community Health Systems, Inc. (c)

    6,200        173,848   

Corindus Vascular Robotics, Inc. (a)(c)

    139,800        447,360   

Dynavax Technologies Corp. (a)(c)

    18,300        415,593   

Forward Pharma A/S - ADR (a)(c)

    23,700        596,292   

Gilead Sciences, Inc.

    1,700        183,821   

GW Pharmaceuticals PLC -
ADR (a)(b)(c)

    17,400        1,376,166   

HCA Holdings, Inc. (a)(b)(c)

    10,377        713,834   

Healthways, Inc. (a)(c)

    159,449        1,876,715   

Hologic, Inc. (a)(b)(c)

    20,000        777,200   

Intra-Cellular Therapies, Inc. (a)(c)

    25,500        1,220,175   

Intrexon Corp. (a)(c)

    14,004        470,534   

Jazz Pharmaceuticals PLC (a)(b)(c)

    4,737        650,295   

Keryx Biopharmaceuticals, Inc. (a)(c)

    132,900        595,392   

Perrigo Co. PLC (a)

    4,360        687,746   

Sinopharm Group Co., Ltd. - Class H

    237,600        984,048   

Team Health Holdings, Inc. (a)(c)

    6,100        363,987   

Veracyte, Inc. (a)(b)(c)

    107,956        702,794   

Vertex Pharmaceuticals, Inc. (a)(b)(c)

    17,200        2,145,528   

Zeltiq Aesthetics, Inc. (c)

    10,600        357,644   
   

 

 

 
      22,557,299   
   

 

 

 

Industrials 12.50%

   

Air China, Ltd. - Class H

    340,000        328,568   

Allison Transmission Holdings,
Inc. (a)(e)

    81,441        2,337,357   

Armstrong World Industries, Inc. (a)(b)(c)

    31,100        1,543,182   
    Shares     Value  

 

 

Industrials (continued)

   

China Railway Construction Corp., Ltd. - Class H

    541,000        $813,880   

Kansas City Southern (a)(b)

    33,300        2,755,908   

Keisei Electric Railway Co., Ltd.

    73,000        906,828   

Mitsubishi Heavy Industries, Ltd.

    124,000        631,047   

Roper Technologies, Inc. (a)(b)

    19,500        3,633,825   

Seibu Holdings, Inc.

    55,500        1,131,893   

TransDigm Group, Inc. (a)(c)

    15,400        3,385,690   

Viasat, Inc. (a)(b)(c)

    37,649        2,483,328   

Wesco Aircraft Holdings,
Inc. (a)(c)

    5,200        64,792   

Xinjiang Goldwind Science & Technology Co., Ltd. - Class H

    172,400        325,199   
   

 

 

 
          20,341,497   
   

 

 

 

Information Technology 10.73%

   

Alibaba Group Holding, Ltd. - Sponsored ADR (a)(c)

    19,200        1,609,536   

Alphabet, Inc. - Class A (a)(c)

    2,470        1,821,353   

Alphabet, Inc. - Class C (a)(c)

    2,337        1,661,163   

Baidu, Inc. - Sponsored
ADR (c)

    2,200        412,434   

Facebook, Inc. -
Class A (a)(b)(c)

    34,400        3,507,768   

Fujifilm Holdings Corp.

    14,100        566,945   

Lam Research Corp. (a)

    30,200        2,313,018   

Microsoft Corp. (a)

    17,100        900,144   

Nintendo Co., Ltd.

    4,200        678,014   

Pandora Media, Inc. (a)(b)(c)

    75,400        867,854   

Salesforce.com, Inc. (a)(b)(c)

    40,000        3,108,400   
   

 

 

 
      17,446,629   
   

 

 

 

Materials 3.40%

   

Axalta Coating Systems,
Ltd. (a)(b)(c)

    79,000        2,182,770   

W.R. Grace & Co. (a)(b)(c)

    33,400        3,350,020   
   

 

 

 
      5,532,790   
   

 

 

 

Telecommunication Services 4.06%

  

 

AT&T, Inc. (a)(b)

    69,900        2,342,349   

China Mobile, Ltd.

    193,500        2,316,827   

China Unicom Hong
Kong, Ltd.

    1,004,000        1,239,682   

Nippon Telegraph & Telephone Corp.

    19,000        706,340   
   

 

 

 
      6,605,198   
   

 

 

 
 

 

 

Annual Report  |  October 31, 2015

 

 

9


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

Utilities 2.33%

  

  

Calpine Corp. (a)(b)(c)

     244,700         $3,795,297   
     

 

 

 

TOTAL COMMON STOCKS

(Cost $175,881,665)

          177,110,054   
     

 

 

 

EXCHANGE TRADED FUNDS 3.59%

  

  

iShares ® China Large Cap ETF (a)

     45,100         1,725,977   

iShares ® MSCI Japan Index ETF

     73,200         901,824   

PowerShares ® Deutsche Bank U.S. Dollar Index Bullish Fund (a)(b)(c)

     16,700         421,675   

Utilities Select Sector SPDR ®
ETF (a)(b)

     63,900         2,795,625   
     

 

 

 
        5,845,101   
     

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Cost $5,927,161)

  

  

     5,845,101   
     

 

 

 

CLOSED-END FUNDS 3.14%

  

  

Gabelli Equity Trust, Inc. (a)

     171,400         976,980   

Guggenheim Enhanced Equity Income Fund (a)

     65,800         507,976   

Liberty All-Star Equity Fund (a)

     311,800         1,674,366   

Nuveen Real Estate Income Fund (a)

     96,500         1,055,710   

Tekla Healthcare Opportunities Fund (a)

     50,636         886,637   
     

 

 

 
        5,101,669   
     

 

 

 

TOTAL CLOSED-END FUNDS

(Cost $5,523,418)

        5,101,669   
     

 

 

 

PARTICIPATION NOTES 2.60%

  

  

Consumer Staples 1.37%

     

Kweichow Moutai Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 12/09/2015 (c)

     43,490         1,472,223   

Shanghai Jahwa United Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 01/29/2016 (c)(d)

     138,300         754,384   
     

 

 

 
        2,226,607   
     

 

 

 
     Shares      Value  

 

 

Industrials 1.23%

     

Zhengzhou Yutong Bus Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 11/18/2015 (c)

     579,550             $2,010,880   
     

 

 

 

TOTAL PARTICIPATION NOTES

(Cost $4,288,231)

  

  

     4,237,487   
     

 

 

 

WARRANTS 0.01% (c)

     

Atlas Mara, Ltd., Strike price $11.50, Expires 12/17/2017 (e)

     116,958         14,620   
     

 

 

 

TOTAL WARRANTS

(Cost $1,170)

        14,620   
     

 

 

 
Description and    Principal         
Maturity Date    Amount      Value  

 

 

CORPORATE BONDS 6.55%

     

American Express Co.

     

Series C, Perpetual Maturity, 4.900% (a)(f)(g)

     $500,000         485,625   

Bank of America Corp.

     

Series AA, Perpetual Maturity, 6.100% (a)(f)(g)

     1,200,000         1,215,000   

Bank of New York Mellon Corp.

     

Series D, Perpetual Maturity, 4.500% (a)(f)(g)

     700,000         652,750   

Berkshire Hathaway Energy Co.

     

11/15/2018, 2.000% (a)

     1,000,000         1,001,868   

Citigroup, Inc.

     

Series N, Perpetual Maturity, 5.800% (a)(f)(g)

     1,300,000         1,293,500   

Series P, Perpetual Maturity, 5.950% (a)(f)(g)

     1,400,000         1,352,750   

Citizens Financial Group, Inc.

     

Perpetual Maturity, 5.500%  (a)(e)(f)(g)

     950,000         935,750   

Goldman Sachs Group, Inc.

     

Series M, Perpetual Maturity, 5.375% (a)(f)(g)

     1,000,000         991,250   

JPMorgan Chase & Co.

     

Series Z, Perpetual Maturity, 5.300% (a)(f)(g)

     1,300,000         1,307,150   

Textron Financial Corp.

     

02/15/2067, 6.000% (a)(e)(f)

     1,910,000         1,418,175   
     

 

 

 

TOTAL CORPORATE BONDS

(Cost $11,008,195)

        10,653,818   
     

 

 

 
 

 

 

10

 

 

www.cloughglobal.com


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

Description and    Principal         
Maturity Date    Amount      Value  

 

 

ASSET/MORTGAGE BACKED SECURITIES 3.75%

  

Federal National Mortgage Association

  

  

Series AM8004, 02/01/2027, 2.720%

     $814,403         $798,844   

Government National Mortgage Association

     

Series 2014-155, Class VA, 03/16/2037, 3.000%

     964,044         993,308   

Series 2014-86, Class A, 11/16/2040, 2.650%

     705,843         720,236   

Series 2015-75, Class A, 02/16/2044, 3.000% (a)

     992,190         1,025,918   

Series 2015-22, Class A, 08/16/2047, 2.400%

     935,984         945,063   

Series 2015-2, Class VA, 12/16/2049, 2.500%

     1,352,869         1,349,374   

Small Business Administration Participation Certificates

     

Series 2008-20L, Class 1, 12/01/2028, 6.220%

     234,826         268,454   
     

 

 

 

TOTAL ASSET/MORTGAGE BACKED SECURITIES

(Cost $6,111,949)

        6,101,197   
     

 

 

 
GOVERNMENT & AGENCY OBLIGATIONS 11.77%   

U.S. Treasury Bonds

     

08/15/2040, 3.875% (a)

     5,200,000         6,162,645   

02/15/2042, 3.125% (a)

     2,000,000         2,097,644   

08/15/2042, 2.750% (a)

     4,000,000         3,881,040   

U.S. Treasury Notes

     

09/15/2017, 1.000% (a)

     2,000,000         2,010,468   

09/30/2017, 0.625% (a)

     5,000,000         4,990,380   
     

 

 

 

TOTAL GOVERNMENT & AGENCY OBLIGATIONS

(Cost $19,241,512)

    

  

     19,142,177   
     

 

 

 
     Shares      Value  

 

 

SHORT-TERM INVESTMENTS 8.98%

  

Money Market Fund 8.98%

  

  

BlackRock Liquidity Funds,
T-Fund Portfolio - Institutional Class (0.010% 7-day yield)

     14,606,754         14,606,754   
     

 

 

 

TOTAL SHORT-TERM INVESTMENTS

(Cost $14,606,754)

        14,606,754   
     

 

 

 

Total Investments - 149.28%

(Cost $242,590,055)

        242,812,877   

Liabilities in Excess of Other
Assets - (49.28%) (h)

        (80,161,970)   
     

 

 

 

NET ASSETS - 100.00%

        $162,650,907   
     

 

 

 
SCHEDULE OF SECURITIES SOLD         
SHORT (c)    Shares      Value  

 

 

COMMON STOCKS (40.13%)

  

  

Consumer Discretionary (1.92%)

  

  

Hotels (0.70%)

     

MGM Resorts International

     (19,100)         $(442,929)   

Wynn Resorts, Ltd.

     (9,800)         (685,510)   
     

 

 

 
        (1,128,439)   
     

 

 

 

Internet & Catalog Retail (1.22%)

 

Expedia, Inc.

     (14,600)         (1,989,980)   
     

 

 

 

TOTAL CONSUMER DISCRETIONARY

        (3,118,419)   
     

 

 

 

Consumer Staples (0.22%)

  

  

Carlsberg A/S - Class B

     (4,443)         (364,226)   
     

 

 

 

Energy (6.35%)

     

Cheniere Energy, Inc.

     (8,000)         (396,160)   

Core Laboratories NV

     (8,200)         (953,906)   

Ensco PLC - Class A

     (104,900)         (1,744,487)   

Helmerich & Payne, Inc.

     (18,000)         (1,012,860)   

Nabors Industries, Ltd.

     (61,500)         (617,460)   

National Oilwell Varco, Inc.

     (12,200)         (459,208)   

Oil States International, Inc.

     (29,100)         (873,291)   

Patterson-UTI Energy, Inc.

     (44,300)         (659,627)   

Petroleo Brasileiro S.A. - Sponsored ADR

     (328,300)         (1,602,104)   

Rowan Cos., PLC - A Shares

     (35,800)         (704,544)   

Transocean, Ltd.

     (82,100)         (1,299,643)   
     

 

 

 
        (10,323,290)   
     

 

 

 

Financials (9.11%)

     

Commercial Banks (6.67%)

 

  

Banco Bilbao Vizcaya Argentaria S.A. - Sponsored ADR

     (155,400)         (1,339,548)   

Banco Santander S.A. - Sponsored ADR

     (199,600)         (1,105,784)   

BNP Paribas S.A.

     (31,517)         (1,915,184)   

Intesa Sanpaolo SpA

     (526,819)         (1,835,275)   

Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR

     (264,200)         (1,809,770)   

Seven Bank, Ltd.

     (204,100)         (937,030)   

UniCredit SpA

     (176,444)         (1,140,877)   

United Overseas Bank, Ltd.

     (53,000)         (769,141)   
     

 

 

 
          (10,852,609)   
     

 

 

 

Consumer Finance (1.92%)

 

Ally Financial, Inc.

     (26,800)         (533,856)   

American Express Co.

     (35,400)         (2,593,404)   
     

 

 

 
        (3,127,260)   
     

 

 

 

Real Estate Management &
Development (0.52%)

   

  

China Resources Land, Ltd.

     (322,000)         (841,289)   
     

 

 

 
 

 

 

Annual Report  |  October 31, 2015

 

 

11


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

SCHEDULE OF SECURITIES SOLD         
SHORT (c) (continued)   Shares      Value  

 

 

Financials (continued)

    

TOTAL FINANCIALS

         $(14,821,158)   
    

 

 

 

Health Care (6.24%)

    

AbbVie, Inc.

    (11,200)         (666,960)   

Aetna, Inc.

    (3,500)         (401,730)   

AmerisourceBergen Corp.

    (6,400)         (617,664)   

ANI Pharmaceuticals, Inc.

    (33,500)         (1,401,640)   

Bruker Corp.

    (52,900)         (971,773)   

Eagle Pharmaceuticals, Inc.

    (13,600)         (866,456)   

Express Scripts Holding Co.

    (11,100)         (958,818)   

Horizon Pharma PLC

    (12,100)         (190,212)   

Lannett Co., Inc.

    (6,800)         (304,436)   

Mallinckrodt PLC

    (9,000)         (591,030)   

Merck & Co., Inc.

    (10,700)         (584,862)   

Pacira Pharmaceuticals, Inc.

    (4,700)         (234,765)   

Teligent, Inc.

    (57,400)         (417,298)   

UnitedHealth Group, Inc.

    (10,500)         (1,236,690)   

Varian Medical Systems, Inc.

    (8,900)         (698,917)   
    

 

 

 
       (10,143,251)   
    

 

 

 

Industrials (13.06%)

    

American Airlines Group, Inc.

    (27,500)         (1,271,050)   

Caterpillar, Inc.

    (38,200)         (2,788,218)   

Chicago Bridge & Iron Co. NV

    (63,200)         (2,835,784)   

Deutsche Lufthansa AG

    (70,645)         (1,043,307)   

easyJet PLC

    (42,535)         (1,147,510)   

Emerson Electric Co., Inc.

    (19,100)         (902,093)   

Flowserve Corp.

    (51,000)         (2,364,360)   

International Consolidated Airlines Group S.A.

    (109,554)         (983,776)   

Keppel Corp., Ltd.

    (138,500)         (699,964)   

Kone OYJ, B Shares

    (21,232)         (907,295)   

Kuehne + Nagel International AG

    (7,000)         (970,914)   

Metso OYJ

    (35,099)         (859,547)   

Pentair PLC

    (15,700)         (877,944)   

Rolls-Royce Holdings Entitlement - C Shares (d)

    (371)         (1)   

Rolls-Royce Holdings PLC

    (4)         (42)   

Rolls-Royce Holdings Preference - C Shares (d)

    (302)         (1)   

Sandvik AB

    (138,169)         (1,292,168)   

Triumph Group, Inc.

    (11,100)         (517,038)   

WW Grainger, Inc.

    (8,500)         (1,785,000)   
    

 

 

 
       (21,246,012)   
    

 

 

 

Information Technology (3.23%)

 

  

Corning, Inc.

    (48,200)         (896,520)   

International Business Machines Corp.

    (11,700)         (1,638,936)   

Nippon Electric Glass Co., Ltd.

    (183,000)         (905,370)   
SCHEDULE OF SECURITIES SOLD         
SHORT (c) (continued)    Shares      Value  

 

 

Information Technology (continued)

  

Taiwan Semiconductor Manufacturing Co., Ltd. - Sponsored ADR

     (83,000)         $(1,822,680)   
     

 

 

 
        (5,263,506)   
     

 

 

 

TOTAL COMMON STOCKS

(Proceeds $62,027,603)

        (65,279,862)   
     

 

 

 

EXCHANGE TRADED FUNDS (18.82%)

 

Health Care Select Sector SPDR ® Fund

     (36,500)         (2,603,910)   

iShares ® MSCI Brazil Capped ETF

     (72,800)         (1,664,936)   

iShares ® MSCI Emerging Markets ETF

     (81,343)         (2,836,430)   

iShares ® MSCI South Korea Capped ETF

     (16,600)         (902,708)   

iShares ® Nasdaq Biotechnology ETF

     (3,762)         (1,224,381)   

iShares ® Russell 2000 ® ETF

     (58,500)         (6,747,390)   

Market Vectors ® Oil Service ETF

     (60,300)         (1,843,371)   

Market Vectors ® Semiconductor ETF

     (16,800)         (910,728)   

SPDR ® S&P 500 ® ETF Trust

     (57,100)         (11,872,803)   
     

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Proceeds $28,973,304)

  

  

     (30,606,657)   
     

 

 

 

PREFERRED STOCKS (0.44%)

  

  

Financials (0.44%)

     

Commercial Banks (0.44%)

  

  

Banco Bradesco S.A. - ADR

     (130,400)         (709,376)   
     

 

 

 

TOTAL PREFERRED STOCKS

(Proceeds $734,471)

  

  

     (709,376)   
     

 

 

 

TOTAL SECURITIES SOLD SHORT

(Proceeds $91,735,378)

  

  

     $(96,595,895)   
     

 

 

 

 

(a)  

Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $188,496,799 representing 115.89% of net assets. (See Note 1 and Note 6)

(b)  

Loaned security; a portion or all of the security is on loan as of October 31, 2015.

(c)

Non-income producing security.

(d)  

Fair valued security; valued by management in accordance with procedures approved by the Fund’s Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $2,077,719 or 1.28% of total net assets.

 

 

 

12

 

 

www.cloughglobal.com


Table of Contents
Clough Global Allocation Fund    Statement of Investments
  

 

October 31, 2015

 

 

(e)  

Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $7,135,156 or 4.39% of net assets.

(f)

Floating or variable rate security - rate disclosed as of October 31, 2015.

(g)  

This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

(h)  

Includes cash which is being held as collateral for total return swap contracts or futures contracts.

 

 

FUTURES CONTRACTS

 

Description    Position    Contracts    Expiration
Date
     Underlying Face
Amount at Value
     Unrealized
Appreciation
 

 

 

Foreign Currency Contracts

              

Japanese Yen Currency Future

   Short    52      12/15/2015        $ (5,387,200)       $ 10,225       
           

 

 

 
             $ (5,387,200)       $ 10,225       
           

 

 

 

TOTAL RETURN SWAP CONTRACTS

 

Counter Party   

Reference

Entity/Obligation

   Notional
Amount
     Floating Rate
Paid by the Fund
  

Floating

Rate Index

  

Termination

Date

    

Net Unrealized

Appreciation

 

 

 

Morgan Stanley

   Bharti Infratel, Ltd.    $ 547,621       30 bps + 1D FEDEF    1 D FEDEF      12/27/2016       $ 176,143       

Morgan Stanley

   Housing Development Finance Corp.      670,284       30 bps + 1D FEDEF    1 D FEDEF      12/27/2016         35,780       

Morgan Stanley

   LG Electronics, Inc.      (697,005)       50 bps - 1D FEDEF    1 D FEDEF      10/30/2017         3,605       

Morgan Stanley

   Zhengzhou Yutong Bus Co., Ltd.      108,978       55 bps + 1D FEDEF    1 D FEDEF      01/05/2017         12,809       

 

 
      $ 629,878                $     228,337       

 

 
     Reference    Notional      Floating Rate    Floating    Termination      Net Unrealized  
Counter Party    Entity/Obligation    Amount      Paid by the Fund    Rate Index    Date      Depreciation  

 

 

Credit Suisse

   Bharti Airtel, Ltd.    $ 849,948       75 bps + 1M LIBOR    1 M LIBOR      11/30/2017       $ (56,980)       

Morgan Stanley

   Hon Hai Precision Industry Co., Ltd.      (465,991)       50 bps - 1D FEDEF    1 D FEDEF      05/04/2017         (16,447)       

Credit Suisse

   Larsen & Toubro, Ltd.      628,131       75 bps + 1M LIBOR    1 M LIBOR      11/30/2017         (131,578)       

Credit Suisse

   Mahindra & Mahindra, Ltd.      188,355       75 bps + 1M LIBOR    1 M LIBOR      11/30/2017         (2,822)       

Morgan Stanley

   Mahindra & Mahindra, Ltd.      781,871       30 bps + 1D FEDEF    1 D FEDEF      12/27/2016         (102,630)       

Credit Suisse

   Shriram Transport Finance Co., Ltd.      890,059       75 bps + 1M LIBOR    1 M LIBOR      11/30/2017         (126,356)       

Credit Suisse

   Ultratech Cement, Ltd.      1,024,119       75 bps + 1M LIBOR    1 M LIBOR      11/30/2017         (32,921)       

 

 
      $ 3,896,492                $ (469,734)       

 

 
      $     4,526,370                $ (241,397)       

 

 

 

See Notes to the Financial Statements.

 

 

Annual Report  |  October 31, 2015

 

 

13


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

COMMON STOCKS 118.31%

  

  

Consumer Discretionary 31.04%

  

  

Diversified Consumer Services 3.15%

  

  

Service Corp. International (a)(b)

     76,500             $2,161,890   

Starbucks Corp. (a)(b)

     99,800         6,244,486   
     

 

 

 
        8,406,376   
     

 

 

 

Household Durables 5.71%

  

  

DR Horton, Inc. (a)(b)

     246,221         7,248,746   

Lennar Corp. -
Class A (a)(b)

     159,400         7,981,158   
     

 

 

 
        15,229,904   
     

 

 

 

Internet & Catalog Retail 7.17%

  

  

JD.com, Inc. - ADR (a)(c)

     95,700         2,643,234   

Liberty Ventures - Series A (a)(b)(c)

     220,703         9,616,030   

NetFlix, Inc. (a)(c)

     8,600         932,068   

Priceline Group, Inc. (a)(c)

     2,944         4,281,282   

Rakuten, Inc.

     118,100         1,651,560   
     

 

 

 
        19,124,174   
     

 

 

 

Media 10.96%

     

AMC Entertainment Holdings, Inc. -
Class A (a)(b)

     105,500         2,887,535   

Comcast Corp. -
Class A (a)(b)

     91,700         5,742,254   

IMAX Corp. (a)(b)(c)

     154,495         5,931,063   

Liberty Broadband Corp. -
Class A (a)(b)(c)

     22,092         1,205,340   

Liberty Broadband Corp. -
Class C (a)(b)(c)

     83,866         4,509,475   

Liberty Media Corp. -
Class A (a)(b)(c)

     88,368         3,601,880   

Liberty Media Corp. -
Class C (a)(b)(c)

     90,936         3,560,144   

Lions Gate Entertainment Corp. (a)

     45,400         1,769,238   
     

 

 

 
        29,206,929   
     

 

 

 

Specialty Retail 2.08%

     

Signet Jewelers, Ltd. (a)(b)

     36,746         5,546,441   
     

 

 

 

Textiles 1.97%

     

Carter’s, Inc. (a)

     51,900         4,716,672   

Samsonite International S.A.

     177,000         524,108   
     

 

 

 
        5,240,780   
     

 

 

 

TOTAL CONSUMER DISCRETIONARY

        82,754,604   
     

 

 

 

Consumer Staples 0.34%

  

  

CVS Health Corp. (a)

     9,300         918,654   
     

 

 

 

Energy 4.99%

     

Anadarko Petroleum Corp. (a)

     32,900         2,200,352   

Concho Resources,
Inc. (a)(c)

     20,800         2,410,928   
     Shares      Value  

 

 

Energy (continued)

  

  

Devon Energy Corp. (a)

     43,900         $1,840,727   

EOG Resources, Inc. (a)

     18,800         1,613,980   

Fairway Energy Partners
LLC (c)(d)(e)

     217,600         2,203,200   

Pacific Coast Oil Trust (a)(e)

     95,800         190,642   

Pioneer Natural Resources Co. (a)

     20,700         2,838,798   
     

 

 

 
            13,298,627   
     

 

 

 

Financials 31.12%

     

Capital Markets 4.69%

     

Atlas Mara, Ltd. (c)(e)

     306,320         1,837,920   

Daiwa Securities Group, Inc.

     79,000         544,758   

Goldman Sachs BDC (a)

     53,000         1,060,530   

Goldman Sachs Group, Inc. (a)

     16,300         3,056,250   

Monex Group, Inc.

     485,300         1,375,425   

Morgan Stanley (a)(b)

     140,396         4,628,856   
     

 

 

 
        12,503,739   
     

 

 

 

Commercial Banks 1.50%

  

  

First Republic Bank (a)

     24,700         1,613,157   

Mitsubishi UFJ Financial Group, Inc.

     144,300         945,418   

Mizuho Financial Group, Inc.

     450,000         933,413   

Sumitomo Mitsui Financial Group, Ltd.

     12,400         499,412   
     

 

 

 
        3,991,400   
     

 

 

 

Diversified Financials 10.10%

  

  

Bank of America Corp. (a)

     662,905         11,123,546   

Citigroup, Inc. (a)(b)

     260,719         13,862,429   

JPMorgan Chase &
Co. (a)

     30,300         1,946,775   
     

 

 

 
        26,932,750   
     

 

 

 

Insurance 3.32%

     

American International Group, Inc. (a)(b)

     121,600         7,668,096   

Ping An Insurance Group Co. of China, Ltd. - Class H

     211,000         1,188,314   
     

 

 

 
        8,856,410   
     

 

 

 

Real Estate Investment Trusts 5.41%

  

  

Healthcare Trust of America, Inc. -
Class A (a)

     85,800         2,257,398   

Ladder Capital Corp. (a)

     118,800         1,694,088   

PennyMac Mortgage Investment Trust (a)

     177,788         2,599,261   

Starwood Property Trust, Inc. (a)(b)

     257,400         5,171,166   

Two Harbors Investment Corp. (a)

     318,757         2,696,684   
     

 

 

 
        14,418,597   
     

 

 

 

Thrifts & Mortgage Finance 6.10%

  

  

Essent Group, Ltd. (a)(b)(c)

     196,200         4,728,420   
 

 

 

14

 

 

www.cloughglobal.com


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

Financials (continued)

     

MGIC Investment Corp. (a)(b)(c)

     602,565         $5,664,111   

NMI Holdings, Inc. - Class A (a)(c)

     177,200         1,332,544   

Radian Group, Inc. (a)(b)

     312,900         4,527,663   
     

 

 

 
        16,252,738   
     

 

 

 

TOTAL FINANCIALS

            82,955,634   
     

 

 

 

Health Care 15.03%

     

3SBio, Inc. (c)(e)

     1,033,000         1,171,531   

Acceleron Pharma, Inc. (a)(c)

     23,200         724,072   

Akorn, Inc. (a)(b)(c)

     78,000         2,085,720   

Albany Molecular Research,
Inc. (a)(c)

     75,600         1,363,824   

Allergan PLC (a)(c)

     5,200         1,604,044   

AstraZeneca PLC - Sponsored ADR (a)

     25,629         817,309   

Bristol-Meyers Squibb Co. (a)

     16,916         1,115,610   

Cardiome Pharma Corp. (a)(c)

     234,100         1,912,597   

Cerner Corp. (a)(b)(c)

     19,300         1,279,397   

Cigna Corp. (a)

     18,000         2,412,720   

Community Health Systems,
Inc. (a)(c)

     10,500         294,420   

Corindus Vascular Robotics,
Inc. (a)(c)

     233,200         746,240   

Dynavax Technologies Corp. (a)(c)

     30,400         690,384   

Forward Pharma A/S - ADR (a)(c)

     39,400         991,304   

Gilead Sciences, Inc.

     2,900         313,577   

GW Pharmaceuticals PLC - ADR (a)(b)(c)

     29,300         2,317,337   

HCA Holdings, Inc. (a)(b)(c)

     17,215         1,184,220   

Healthways, Inc. (a)(c)

     265,711         3,127,418   

Hologic, Inc. (a)(b)(c)

     33,300         1,294,038   

Intra-Cellular Therapies,
Inc. (a)(c)

     42,300         2,024,055   

Intrexon Corp. (a)(b)(c)

     23,559         791,582   

Jazz Pharmaceuticals PLC (a)(b)(c)

     7,934         1,089,180   

Keryx Biopharmaceuticals,
Inc. (a)(c)

     222,800         998,144   

MedEquities Realty Trust,
Inc. (d)(e)

     51,100         830,375   

Perrigo Co. PLC (a)

     7,250         1,143,615   

Sinopharm Group Co., Ltd. - Class H

     394,400         1,633,453   

Team Health Holdings, Inc. (a)(c)

     10,200         608,634   

Veracyte, Inc. (a)(b)(c)

     203,535         1,325,013   

Vertex Pharmaceuticals,
Inc. (a)(b)(c)

     28,700         3,580,038   

Zeltiq Aesthetics, Inc. (c)

     17,700         597,198   
     

 

 

 
        40,067,049   
     

 

 

 

Industrials 12.88%

     

Air China, Ltd. - Class H

     568,000         548,902   

Allison Transmission Holdings, Inc. (a)(e)

     135,277         3,882,450   
     Shares      Value  

 

 

Industrials (continued)

     

Armstrong World Industries,
Inc. (a)(c)

     51,400         $2,550,468   

China Railway Construction Corp., Ltd. - Class H

     903,000         1,358,473   

Kansas City Southern (a)(b)

     55,600         4,601,456   

Keisei Electric Railway Co., Ltd.

     122,000         1,515,522   

Mitsubishi Heavy Industries, Ltd.

     205,000         1,043,263   

Roper Technologies, Inc. (a)(b)

     32,600         6,075,010   

Seibu Holdings, Inc.

     92,600         1,888,527   

TransDigm Group, Inc. (a)(c)

     25,700         5,650,145   

Viasat, Inc. (a)(b)(c)

     69,242         4,567,202   

Wesco Aircraft Holdings, Inc. (a)(c)

     8,600         107,156   

Xinjiang Goldwind Science &

     

Technology Co., Ltd. - Class H

     288,800         544,765   
     

 

 

 
            34,333,339   
     

 

 

 

Information Technology 12.54%

  

  

Alibaba Group Holding, Ltd. - Sponsored ADR (a)(c)

     32,000         2,682,560   

Alphabet, Inc. - Class A (a)(c)

     4,083         3,010,763   

Alphabet, Inc. - Class C (a)(c)

     3,866         2,747,992   

Baidu, Inc. - Sponsored ADR (c)

     3,700         693,639   

Electronics For Imaging,
Inc. (a)(b)(c)

     55,100         2,558,844   

Facebook, Inc. - Class A (a)(b)(c)

     58,000         5,914,260   

Fujifilm Holdings Corp.

     23,000         924,803   

Lam Research Corp. (a)(b)

     55,300         4,235,427   

Microsoft Corp. (a)

     28,800         1,516,032   

Nintendo Co., Ltd.

     6,800         1,097,738   

Pandora Media, Inc. (a)(b)(c)

     252,400         2,905,124   

Salesforce.com, Inc. (a)(b)(c)

     66,200         5,144,402   
     

 

 

 
        33,431,584   
     

 

 

 

Materials 3.85%

     

Axalta Coating Systems,
Ltd. (a)(b)(c)

     153,800         4,249,494   

W.R. Grace & Co. (a)(b)(c)

     60,000         6,018,000   
     

 

 

 
        10,267,494   
     

 

 

 

Telecommunication Services 4.15%

  

  

AT&T, Inc. (a)(b)

     116,700         3,910,617   

China Mobile, Ltd.

     323,000         3,867,365   

China Unicom Hong Kong, Ltd.

     1,692,000         2,089,185   

Nippon Telegraph & Telephone Corp.

     31,800         1,182,190   
     

 

 

 
        11,049,357   
     

 

 

 
 

 

 

Annual Report  |  October 31, 2015

 

 

15


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

Utilities 2.37%

  

  

Calpine Corp. (a)(b)(c)

     406,800         $6,309,468   
     

 

 

 

TOTAL COMMON STOCKS

(Cost $310,567,712)

        315,385,810   
     

 

 

 

EXCHANGE TRADED FUNDS 3.68%

  

  

iShares ® China Large Cap
ETF (a) 

     76,500         2,927,655   

iShares ® MSCI Japan Index
ETF (a)

     123,100         1,516,592   

PowerShares ® Deutsche Bank U.S. Dollar Index Bullish Fund (a)(b)(c)

     27,900         704,475   

Utilities Select Sector SPDR ® ETF (a)

     106,700         4,668,125   
     

 

 

 
        9,816,847   
     

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Cost $9,954,943)

  

  

     9,816,847   
     

 

 

 

PARTICIPATION NOTES 2.65%

  

  

Consumer Staples 1.39%

     

Kweichow Moutai Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 12/09/2015 (c)

     72,590         2,457,317   

Shanghai Jahwa United Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 01/29/2016 (c)(d)

     230,300         1,256,215   
     

 

 

 
        3,713,532   
     

 

 

 

Industrials 1.26%

     

Zhengzhou Yutong Bus Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 11/18/2015 (c)

     965,500         3,350,021   
     

 

 

 

TOTAL PARTICIPATION NOTES

(Cost $7,147,310)

  

  

     7,063,553   
     

 

 

 
     Shares      Value  

 

 

WARRANTS 0.01% (c)

  

  

Atlas Mara, Ltd., Strike price $11.50, Expires 12/17/2017 (e)

     195,720         $24,465   
     

 

 

 

TOTAL WARRANTS

(Cost $1,957)

  

  

     24,465   
     

 

 

 

Description and

Maturity Date

   Principal
Amount
     Value  

 

 

CORPORATE BONDS 1.68%

  

  

Citigroup, Inc.

     

Series N, Perpetual Maturity, 5.800% (a)(f)(g)

     $1,900,000         1,890,500   

Goldman Sachs Group, Inc.

     

Series M, Perpetual Maturity, 5.375% (a)(f)(g)

     700,000         693,875   

JPMorgan Chase & Co.

     

Series Z, Perpetual Maturity, 5.300% (a)(f)(g)

     1,900,000         1,910,450   
     

 

 

 

TOTAL CORPORATE BONDS

(Cost $4,512,164)

  

  

     4,494,825   
     

 

 

 

ASSET/MORTGAGE BACKED SECURITIES 0.51%

  

Federal National Mortgage Association

     

Series AM8004, 02/01/2027, 2.720%

     1,382,018         1,355,615   
     

 

 

 

TOTAL ASSET/MORTGAGE BACKED SECURITIES

(Cost $1,376,835)

        1,355,615   
     

 

 

 

GOVERNMENT & AGENCY OBLIGATIONS 9.10%

  

U.S. Treasury Bonds

     

08/15/2040, 3.875% (a)

     8,800,000         10,429,091   

08/15/2042, 2.750% (a)

     6,000,000         5,821,560   

U.S. Treasury Notes

     

09/15/2017, 1.000% (a)

     3,000,000         3,015,702   

09/30/2017, 0.625% (a)

     5,000,000         4,990,380   
     

 

 

 

TOTAL GOVERNMENT & AGENCY OBLIGATIONS

(Cost $24,342,001)

    

  

     24,256,733   
     

 

 

 
 

 

 

16

 

 

www.cloughglobal.com


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

 

 

    

    

Shares

     Value  

 

 

SHORT-TERM INVESTMENTS 15.02%

  

  

Money Market Fund 15.02%

  

  

BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.010% 7-day yield)

     40,031,659         $40,031,659   
     

 

 

 

TOTAL SHORT-TERM INVESTMENTS

(Cost $40,031,659)

  

  

     40,031,659   
     

 

 

 

Total Investments - 150.96%

(Cost $ 397,934,581)

  

  

     402,429,507   

Liabilities in Excess of Other
Assets - (50.96%) (h)

    

     (135,853,860)   
     

 

 

 

NET ASSETS - 100.00%

  

     $266,575,647   
     

 

 

 
SCHEDULE OF SECURITIES
SOLD SHORT (c)
   Shares      Value  

 

 

COMMON STOCKS (40.94%)

 

  

Consumer Discretionary (2.05%)

 

  

Hotels (0.70%)

     

MGM Resorts International

     (31,800)         $(737,442)   

Wynn Resorts, Ltd.

     (16,100)         (1,126,195)   
     

 

 

 
        (1,863,637)   
     

 

 

 

Internet & Catalog Retail (1.35%)

 

  

Expedia, Inc.

     (26,400)         (3,598,320)   
     

 

 

 

TOTAL CONSUMER DISCRETIONARY

    

     (5,461,957)   
     

 

 

 

Consumer Staples (0.23%)

  

  

Carlsberg A/S -
Class B

     (7,480)         (613,191)   
     

 

 

 

Energy (6.45%)

     

Cheniere Energy, Inc.

     (13,400)         (663,568)   

Core Laboratories NV

     (13,700)         (1,593,721)   

Ensco PLC - Class A

     (175,100)         (2,911,913)   

Helmerich & Payne, Inc.

     (29,400)         (1,654,338)   

Nabors Industries, Ltd.

     (102,600)         (1,030,104)   

National Oilwell Varco, Inc.

     (20,300)         (764,092)   

Oil States International, Inc.

     (48,500)         (1,455,485)   

Patterson-UTI Energy, Inc.

     (73,900)         (1,100,371)   

Petroleo Brasileiro S.A. - Sponsored ADR

     (547,000)         (2,669,360)   

Rowan Cos., PLC - A Shares

     (59,700)         (1,174,896)   

Transocean, Ltd.

     (137,000)         (2,168,710)   
     

 

 

 
        (17,186,558)   
     

 

 

 

Financials (9.25%)

     

Commercial Banks (6.77%)

 

  

Banco Bilbao Vizcaya Argentaria S.A. - Sponsored ADR

     (258,400)         (2,227,408)   
SCHEDULE OF SECURITIES SOLD
SHORT (c) (continued)
   Shares      Value  

 

 

Financials (continued)

  

  

Banco Santander S.A. - Sponsored ADR

     (331,600)         $(1,837,064)   

BNP Paribas S.A.

     (52,418)         (3,185,268)   

Intesa Sanpaolo SpA

     (876,174)         (3,052,320)   

Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR

     (440,600)         (3,018,110)   

Seven Bank, Ltd.

     (340,000)         (1,560,951)   

UniCredit SpA

     (293,451)         (1,897,438)   

United Overseas Bank, Ltd.

     (87,000)         (1,262,553)   
     

 

 

 
        (18,041,112)   
     

 

 

 

Consumer Finance (1.95%)

 

  

Ally Financial, Inc.

     (44,900)         (894,408)   

American Express Co.

     (58,900)         (4,315,014)   
     

 

 

 
        (5,209,422)   
     

 

 

 

Real Estate Management &
Development (0.53%)

   

  

China Resources Land, Ltd.

     (542,000)         (1,416,084)   
     

 

 

 

TOTAL FINANCIALS

  

     (24,666,618)   
     

 

 

 

Health Care (6.37%)

     

AbbVie, Inc.

     (19,000)         (1,131,450)   

Aetna, Inc.

     (5,900)         (677,202)   

AmerisourceBergen Corp.

     (10,800)         (1,042,308)   

ANI Pharmaceuticals, Inc.

     (56,000)         (2,343,040)   

Bruker Corp.

     (87,900)         (1,614,723)   

Eagle Pharmaceuticals, Inc.

     (22,900)         (1,458,959)   

Express Scripts Holding Co.

     (18,100)         (1,563,478)   

Horizon Pharma PLC

     (20,500)         (322,260)   

Lannett Co., Inc.

     (11,500)         (514,855)   

Mallinckrodt PLC

     (15,200)         (998,184)   

Merck & Co., Inc.

     (17,800)         (972,948)   

Pacira Pharmaceuticals, Inc.

     (8,000)         (399,600)   

Teligent, Inc.

     (97,100)         (705,917)   

UnitedHealth Group, Inc.

     (17,500)         (2,061,150)   

Varian Medical Systems, Inc.

     (14,800)         (1,162,244)   
     

 

 

 
        (16,968,318)   
     

 

 

 

Industrials (13.30%)

     

American Airlines Group, Inc.

     (45,917)         (2,122,284)   

Caterpillar, Inc.

     (64,000)         (4,671,360)   

Chicago Bridge & Iron Co.

     (105,900)         (4,751,733)   

Deutsche Lufthansa AG

     (117,348)         (1,733,031)   

easyJet PLC

     (70,640)         (1,905,728)   

Emerson Electric Co., Inc.

     (32,100)         (1,516,083)   

Flowserve Corp.

     (84,600)         (3,922,056)   

International Consolidated Airlines Group S.A.

     (181,984)         (1,634,185)   

Keppel Corp., Ltd.

     (232,100)         (1,173,009)   

Kone OYJ, B Shares

     (35,708)         (1,525,889)   

Kuehne + Nagel International AG

     (11,700)         (1,622,813)   
 

 

 

Annual Report  |  October 31, 2015

 

 

17


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

SCHEDULE OF SECURITIES

SOLD SHORT (c) (continued)

   Shares      Value  

 

 

Industrials (continued)

  

  

Metso OYJ

     (58,353)         $(1,429,019)   

Pentair PLC

     (26,500)         (1,481,880)   

Rolls-Royce Holdings Entitlement - C Shares (d)

     (649)         (1)   

Rolls-Royce Holdings PLC

     (7)         (74)   

Rolls-Royce Holdings Preference - C Shares (d)

     (508)         (1)   

Sandvik AB

     (229,734)         (2,148,492)   

Triumph Group, Inc.

     (18,400)         (857,072)   

WW Grainger, Inc.

     (14,100)         (2,961,000)   
     

 

 

 
        (35,455,710)   
     

 

 

 

Information Technology (3.29%)

 

  

Corning, Inc.

     (80,800)         (1,502,880)   

International Business Machines Corp.

     (19,510)         (2,732,961)   

Nippon Electric Glass Co., Ltd.

     (305,000)         (1,508,950)   

Taiwan Semiconductor Manufacturing Co., Ltd. - Sponsored ADR

     (138,300)         (3,037,068)   
     

 

 

 
        (8,781,859)   
     

 

 

 

TOTAL COMMON STOCKS

(Proceeds $103,284,713)

  

  

     (109,134,211)   
     

 

 

 

EXCHANGE TRADED FUNDS (21.55%)

 

  

Health Care Select Sector SPDR ® Fund

     (60,500)         (4,316,070)   

iShares ® MSCI Brazil Capped ETF

     (421,700)         (9,644,279)   

iShares ® MSCI Emerging Markets ETF

     (135,651)         (4,730,150)   

iShares ® MSCI South Korea Capped ETF

     (27,700)         (1,506,326)   

iShares ® Nasdaq Biotechnology ETF

     (6,378)         (2,075,784)   

iShares ® Russell 2000 ® ETF

     (98,600)         (11,372,524)   

Market Vectors ® Oil Service ETF

     (100,700)         (3,078,399)   

Market Vectors ® Semiconductor ETF

     (28,200)         (1,528,722)   

SPDR ® S&P 500 ® ETF Trust

     (92,250)         (19,181,543)   
     

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Proceeds $55,729,917)

  

  

     (57,433,797)   
     

 

 

 
SCHEDULE OF SECURITIES
SOLD SHORT (c) (continued)
   Shares      Value  

 

 

PREFERRED STOCKS (0.45%)

  

  

Financials (0.45%)

     

Commercial Banks (0.45%)

  

  

Banco Bradesco S.A. - ADR

     (219,100)         (1,191,904)     
     

 

 

 

TOTAL PREFERRED STOCKS

(Proceeds $ 1,234,180)

  

  

     $(1,191,904)     
     

 

 

 

TOTAL SECURITIES SOLD SHORT

(Proceeds $ 160,248,810)

  

  

     $(167,759,912)     
     

 

 

 

 

(a)

Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $315,265,121 representing 118.26% of net assets. (See Note 1 and Note 6)

(b)  

Loaned security; a portion or all of the security is on loan as of October 31, 2015.

(c)

Non-income producing security.

(d)

Fair valued security; valued by management in accordance with procedures approved by the Fund’s Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $4,289,788 or 1.61% of total net assets.

(e)  

Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $10,140,583 or 3.80% of net assets.

(f)  

Floating or variable rate security - rate disclosed as of October 31, 2015.

(g)  

This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

(h)

Includes cash which is being held as collateral for total return swap contracts or futures contracts.

 

 

 

18

 

 

www.cloughglobal.com


Table of Contents
Clough Global Equity Fund    Statement of Investments
  

 

October 31, 2015

 

 

FUTURES CONTRACTS

 

Description    Position    Contracts   

Expiration

Date

     Underlying Face
Amount at Value
    

Unrealized    

Appreciation    

 

 

 

Foreign Currency Contracts

              

Japanese Yen Currency Future

   Short    87      12/15/2015       $ (9,013,200)       $ 17,108       
           

 

 

 
            $ (9,013,200)       $ 17,108       
           

 

 

 

TOTAL RETURN SWAP CONTRACTS

 

Counter Party   

Reference

Entity/Obligation

  Notional
Amount
    Floating Rate
Paid by the Fund
 

Floating

Rate Index

 

Termination

Date

   

Net Unrealized    

Appreciation    

 

 

 

Morgan Stanley

   Bharti Infratel, Ltd.   $ 875,103      30 bps + 1D FEDEF   1 D FEDEF     12/27/2016      $ 276,521       

Morgan Stanley

   Housing Development Finance Corp.     1,102,791      30 bps + 1D FEDEF   1 D FEDEF     12/27/2016        60,292       

Morgan Stanley

   LG Electronics, Inc.     (1,168,889)      50 bps - 1D FEDEF   1 D FEDEF     10/30/2017        6,046       

Morgan Stanley

   Zhengzhou Yutong Bus Co., Ltd.     182,252      55 bps + 1D FEDEF   1 D FEDEF     01/05/2017        21,421       

 

 
     $ 991,257            $ 364,280       

 

 
Counter Party   

Reference

Entity/Obligation

  Notional
Amount
    Floating Rate
Paid by the Fund
  Floating
Rate Index
 

Termination

Date

   

Net Unrealized    

Depreciation    

 

 

 

Credit Suisse

   Adani Ports   $ 1,596,390      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017      $ (179,273)       

Credit Suisse

   Bharti Airtel, Ltd.     1,408,630      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017        (94,435)       

Morgan Stanley

   Hon Hai Precision Industry Co., Ltd.     (773,927)      50 bps - 1D FEDEF   1 D FEDEF     05/04/2017        (27,290)       

Credit Suisse

   Larsen & Toubro, Ltd.     1,024,076      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017        (214,478)       

Credit Suisse

   Mahindra & Mahindra, Ltd.     314,221      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017        (4,850)       

Morgan Stanley

   Mahindra & Mahindra, Ltd.     1,291,778      30 bps + 1D FEDEF   1 D FEDEF     12/27/2016        (169,745)       

Credit Suisse

   Shriram Transport Finance Co., Ltd.     1,477,744      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017        (208,895)       

Credit Suisse

   Ultratech Cement, Ltd.     1,703,882      75 bps + 1M LIBOR   1 M LIBOR     11/30/2017        (54,991)       

 

 
     $ 8,042,794            $ (953,957)       

 

 
     $ 9,034,051            $ (589,677)       

 

 

 

See Notes to the Financial Statements.

 

 

Annual Report  |  October 31, 2015

 

 

19


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

COMMON STOCKS 109.91%

  

  

Consumer Discretionary 28.55%

  

  

Diversified Consumer Services 3.17%

  

  

Service Corp. International (a)

     193,700         $5,473,962   

Starbucks Corp. (a)(b)

     249,700         15,623,729   
     

 

 

 
        21,097,691   
     

 

 

 

Household Durables 5.70%

  

  

DR Horton, Inc. (a)(b)

     613,462         18,060,321   

Lennar Corp. - Class A (a)(b)

     397,700         19,912,839   
     

 

 

 
        37,973,160   
     

 

 

 

Internet & Catalog Retail 6.68%

  

  

JD.com, Inc. - ADR (a)(c)

     237,900         6,570,798   

Liberty Ventures -
Series A (a)(b)(c)

     481,471         20,977,692   

NetFlix, Inc. (a)(c)

     21,200         2,297,656   

Priceline Group, Inc. (a)(c)

     7,289         10,599,955   

Rakuten, Inc.

     293,500         4,104,427   
     

 

 

 
        44,550,528   
     

 

 

 

Media 10.08%

  

  

AMC Entertainment Holdings, Inc. - Class A (a)

     266,600         7,296,842   

Comcast Corp. - Class A (a)(b)

     229,000         14,339,980   

IMAX Corp. (a)(c)

     286,900         11,014,091   

Liberty Broadband Corp. -
Class A (a)(b)(c)

     52,014         2,837,884   

Liberty Broadband Corp. -
Class C (a)(b)(c)

     203,467         10,940,421   

Liberty Media Corp. - Class A (a)(b)(c)

     208,056         8,480,362   

Liberty Media Corp. - Class C (a)(b)(c)

     201,912         7,904,855   

Lions Gate Entertainment Corp. (a)(b)

     113,100         4,407,507   
     

 

 

 
        67,221,942   
     

 

 

 

Specialty Retail 2.07%

  

  

Signet Jewelers, Ltd. (a)(b)

     91,446         13,802,859   
     

 

 

 

Textiles 0.85%

  

  

Carter’s, Inc. (a)

     48,100         4,371,328   

Samsonite International S.A.

     440,400         1,304,052   
     

 

 

 
        5,675,380   
     

 

 

 

TOTAL CONSUMER DISCRETIONARY

  

     190,321,560   
     

 

 

 

Consumer Staples 0.35%

  

  

CVS Health Corp. (a)

     23,300         2,301,574   
     

 

 

 
     Shares      Value  

 

 

Energy 4.88%

  

  

Anadarko Petroleum Corp. (a)(b)

     82,000         $5,484,160   

Concho Resources,
Inc. (a)(c)

     51,600         5,980,956   

Devon Energy Corp. (a)(b)

     109,200         4,578,756   

EOG Resources, Inc. (a)

     46,800         4,017,780   

Fairway Energy Partners LLC (c)(d)(e)

     536,000         5,427,000   

Pioneer Natural Resources Co.

     51,230         7,025,682   
     

 

 

 
        32,514,334   
     

 

 

 

Financials 28.29%

     

Business Development Corporations 0.54%

   

  

Golub Capital BDC,
Inc. (a)

     220,900         3,616,133   
     

 

 

 

Capital Markets 3.78%

  

  

Atlas Mara, Ltd. (c)(e)

     764,522         4,587,132   

Daiwa Securities Group, Inc.

     195,000         1,344,655   

Goldman Sachs Group, Inc. (a)

     40,700         7,631,250   

Morgan Stanley (a)(b)

     353,213         11,645,433   
     

 

 

 
        25,208,470   
     

 

 

 

Commercial Banks 1.48%

  

  

First Republic Bank (a)

     61,300         4,003,503   

Mitsubishi UFJ Financial Group, Inc.

     356,100         2,333,079   

Mizuho Financial Group, Inc.

     1,110,600         2,303,664   

Sumitomo Mitsui Financial

     

Group, Ltd.

     31,100         1,252,557   
     

 

 

 
        9,892,803   
     

 

 

 

Diversified Financials 10.10%

  

  

Bank of America
Corp. (a)(b)

     1,641,710         27,547,894   

Citigroup, Inc. (a)(b)

     657,125         34,939,336   

JPMorgan Chase &
Co. (a)

     75,200         4,831,600   
     

 

 

 
        67,318,830   
     

 

 

 

Insurance 3.40%

     

American International Group, Inc. (a)(b)

     313,000         19,737,780   

Ping An Insurance Group Co. of China, Ltd. - Class H

     521,000         2,934,179   
     

 

 

 
        22,671,959   
     

 

 

 

Real Estate Investment Trusts 5.19%

  

  

Healthcare Trust of America, Inc. -
Class A (a)

     212,600         5,593,506   

Ladder Capital Corp. (a)

     208,196         2,968,875   

PennyMac Mortgage Investment Trust (a)

     442,791         6,473,605   

Starwood Property Trust, Inc. (a)

     638,000         12,817,420   
 

 

 

20

 

 

www.cloughglobal.com


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

Financials (continued)

  

  

Two Harbors Investment Corp. (a)

     792,822         $6,707,274   
     

 

 

 
        34,560,680   
     

 

 

 

Thrifts & Mortgage Finance 3.80%

  

  

MGIC Investment
Corp. (a)(b)(c)

     1,503,731         14,135,071   

Radian Group, Inc. (a)(b)

     772,400         11,176,628   
     

 

 

 
        25,311,699   
     

 

 

 

TOTAL FINANCIALS

  

     188,580,574   
     

 

 

 

Health Care 14.02%

     

3SBio, Inc. (c)(e)

     14,500         16,445   

Acceleron Pharma,
Inc. (a)(b)(c)

     57,496         1,794,450   

Akorn, Inc. (a)(b)(c)

     169,600         4,535,104   

Albany Molecular Research,
Inc. (a)(c)

     189,700         3,422,188   

Allergan PLC (c)

     12,700         3,917,569   

AstraZeneca PLC - Sponsored ADR (a)

     63,824         2,035,347   

Bristol-Meyers Squibb Co. (a)

     41,700         2,750,115   

Cardiome Pharma
Corp. (a)(c)

     576,400         4,709,188   

Cerner Corp. (a)(b)(c)

     48,000         3,181,920   

Cigna Corp. (a)

     44,600         5,978,184   

Community Health Systems,
Inc. (a)(c)

     25,500         715,020   

Corindus Vascular Robotics,
Inc. (a)(c)

     577,300         1,847,360   

Dynavax Technologies Corp. (a)(c)

     75,799         1,721,395   

Forward Pharma A/S - ADR (a)(b)(c)

     98,100         2,468,196   

Gilead Sciences, Inc.

     6,900         746,097   

GW Pharmaceuticals PLC - ADR (a)(b)(c)

     72,400         5,726,116   

HCA Holdings,
Inc. (a)(b)(c)

     42,847         2,947,445   

Healthways,
Inc. (a)(b)(c)

     669,633         7,881,581   

Hologic, Inc. (a)(b)(c)

     83,100         3,229,266   

Intra-Cellular Therapies, Inc. (a)(c)

     105,300         5,038,605   

Intrexon Corp. (a)(b)(c)

     59,372         1,994,899   

Jazz Pharmaceuticals PLC (a)(b)(c)

     19,823         2,721,302   

Keryx Biopharmaceuticals,
Inc. (a)(c)

     549,800         2,463,104   

Perrigo Co. PLC (a)

     17,914         2,825,754   

Sinopharm Group Co., Ltd. -
Class H

     972,800         4,028,963   

Team Health Holdings,
Inc. (a)(c)

     25,100         1,497,717   

Veracyte, Inc. (a)(b)(c)

     449,326         2,925,112   

Vertex Pharmaceuticals,
Inc. (a)(c)

     71,200         8,881,488   

Zeltiq Aesthetics,
Inc. (c)

     43,800         1,477,812   
     

 

 

 
        93,477,742   
     

 

 

 

Industrials 12.66%

     

Air China, Ltd. - Class H

     1,402,000         1,354,860   
     Shares      Value  

 

 

Industrials (continued)

  

  

Allison Transmission Holdings, Inc. (a)(e)

     337,510         $9,686,537   

Armstrong World Industries,
Inc. (a)(b)(c)

     128,900         6,396,018   

China Railway Construction Corp., Ltd. - Class H

     2,236,000         3,363,838   

Kansas City Southern (a)(b)

     137,400         11,371,224   

Keisei Electric Railway Co., Ltd.

     302,000         3,751,537   

Mitsubishi Heavy Industries, Ltd.

     527,000         2,681,948   

Roper Technologies, Inc. (a)(b)

     80,500         15,001,175   

Seibu Holdings, Inc.

     229,700         4,684,608   

TransDigm Group, Inc. (a)(c)

     63,900         14,048,415   

Viasat, Inc. (a)(b)(c)

     158,435         10,450,373   

Wesco Aircraft Holdings,
Inc. (a)(c)

     21,700         270,382   

Xinjiang Goldwind Science & Technology Co., Ltd. -
Class H

     713,000         1,344,936   
     

 

 

 
        84,405,851   
     

 

 

 

Information Technology 10.86%

  

  

Alibaba Group Holding, Ltd. - Sponsored ADR (a)(b)(c)

     79,100         6,630,953   

Alphabet, Inc. - Class A (a)(b)(c)

     10,677         7,873,113   

Alphabet, Inc. - Class C (a)(b)(c)

     9,563         6,797,476   

Baidu, Inc. - Sponsored
ADR (a)(c)

     9,000         1,687,230   

Facebook, Inc. -
Class A (a)(b)(c)

     142,270         14,507,272   

Fujifilm Holdings Corp.

     57,200         2,299,945   

Lam Research Corp. (a)(b)

     125,700         9,627,363   

Microsoft Corp. (a)

     69,800         3,674,272   

Nintendo Co., Ltd.

     17,400         2,808,917   

Pandora Media, Inc. (a)(b)(c)

     310,100         3,569,251   

Salesforce.com, Inc. (a)(b)(c)

     166,000         12,899,860   
     

 

 

 
        72,375,652   
     

 

 

 

Materials 3.85%

     

Axalta Coating Systems,
Ltd. (a)(b)(c)

     384,800         10,632,024   

W.R. Grace & Co. (a)(b)(c)

     149,700         15,014,910   
     

 

 

 
        25,646,934   
     

 

 

 

Telecommunication Services 4.10%

  

  

AT&T, Inc. (a)(b)

     289,100         9,687,741   

China Mobile, Ltd.

     798,000         9,554,667   

China Unicom Hong Kong, Ltd.

     4,152,000         5,126,653   
 

 

 

Annual Report  |  October 31, 2015

 

 

21


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

     Shares      Value  

 

 

Telecommunication Services (continued)

  

Nippon Telegraph & Telephone Corp.

     80,200         $2,981,497   
     

 

 

 
        27,350,558   
     

 

 

 

Utilities 2.35%

  

  

Calpine Corp. (a)(b)(c)

     1,010,000         15,665,100   
     

 

 

 

TOTAL COMMON STOCKS

(Cost $741,498,899)

  

  

     732,639,879   
     

 

 

 

EXCHANGE TRADED FUNDS 3.64%

  

iShares ® China Large Cap ETF (a)

     188,808         7,225,682   

iShares ® MSCI Japan Index ETF (a)

     299,300         3,687,376   

PowerShares ® Deutsche Bank U.S. Dollar Index Bullish Fund (a)(b)(c)

     69,304         1,749,926   

Utilities Select Sector SPDR ® ETF (a)(b)

     264,500         11,571,875   
     

 

 

 
        24,234,859   
     

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Cost $24,572,410)

  

  

     24,234,859   
     

 

 

 

PARTICIPATION NOTES 2.62%

  

  

Consumer Staples 1.38%

  

  

Kweichow Moutai Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 12/09/2015 (c)

     179,210         6,066,617   

Shanghai Jahwa United Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 01/29/2016 (c)(d)

     571,400         3,116,809   
     

 

 

 
        9,183,426   
     

 

 

 

Industrials 1.24%

     

Zhengzhou Yutong Bus Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 11/18/2015 (c)

     2,385,611         8,277,419   
     

 

 

 

TOTAL PARTICIPATION NOTES

(Cost $17,665,889)

  

  

     17,460,845   
     

 

 

 
     Shares      Value  

 

 

WARRANTS 0.01% (c)

  

  

Atlas Mara, Ltd., Strike price $11.50, Expires 12/17/2017 (e)

     487,322         $60,916   
     

 

 

 

TOTAL WARRANTS

(Cost $4,873)

  

  

     60,916   
     

 

 

 

Description and

Maturity Date

   Principal
Amount
     Value  

 

 

CORPORATE BONDS 6.67%

  

  

American Express Co.

     

Series C, Perpetual Maturity, 4.900% (a)(f)(g)

   $ 3,700,000         3,593,625   

Bank of America Corp.

     

Series AA, Perpetual Maturity, 6.100% (a)(f)(g)

     4,800,000         4,860,000   

Bank of New York Mellon Corp.

     

Series D, Perpetual Maturity, 4.500% (a)(f)(g)

     2,800,000         2,611,000   

Berkshire Hathaway Energy Co.

     

11/15/2018, 2.000% (a)

     4,000,000         4,007,472   

Citigroup, Inc.

     

Series N, Perpetual Maturity, 5.800% (a)(f)(g)

     4,800,000         4,776,000   

Series P, Perpetual Maturity, 5.950% (a)(f)(g)

     5,600,000         5,411,000   

Citizens Financial Group, Inc.

     

Perpetual Maturity,
5.500% (a)(e)(f)(g)

     3,825,000         3,767,625   

Goldman Sachs Group, Inc.

     

Series M, Perpetual Maturity, 5.375% (a)(f)(g)

     4,600,000         4,559,750   

JPMorgan Chase & Co.

     

Series Z, Perpetual Maturity, 5.300% (a)(f)(g)

     4,800,000         4,826,400   

Textron Financial Corp.

     

02/15/2067, 6.000% (a)(e)(f)

     8,200,000         6,088,500   
     

 

 

 

TOTAL CORPORATE BONDS

(Cost $46,044,546)

  

  

     44,501,372   
     

 

 

 

ASSET/MORTGAGE BACKED SECURITIES 4.14%

  

Federal National Mortgage Association

     

Series AM8004, 02/01/2027, 2.720%

     3,455,045         3,389,036   

Government National Mortgage Association

     

Series 2014-155, Class VA, 03/16/2037, 3.000% (a)

     3,856,177         3,973,231   
 

 

 

22

 

 

www.cloughglobal.com


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

Description and

Maturity Date

   Principal
Amount
    Value  

 

 

ASSET/MORTGAGE BACKED
SECURITIES (continued)

   

Series 2012-19, Class AC, 03/16/2039, 2.274% (a)

     $4,000,000        $4,045,702   

Series 2014-86, Class A, 11/16/2040, 2.650% (a)

     2,827,292        2,884,943   

Series 2015-75, Class A, 02/16/2044, 3.000% (a)

     3,968,760        4,103,674   

Series 2015-22, Class A, 08/16/2047, 2.400%

     3,743,934        3,780,252   

Series 2015-2, Class VA, 12/16/2049, 2.500%

     5,411,474        5,397,497   
    

 

 

 

TOTAL ASSET/MORTGAGE BACKED SECURITIES

(Cost $27,753,468)

    

  

    27,574,335   
    

 

 

 

GOVERNMENT & AGENCY OBLIGATIONS 12.45%

  

U.S. Treasury Bonds

    

08/15/2040, 3.875% (a)

     22,000,000        26,072,728   

02/15/2042, 3.125% (a)

     8,000,000        8,390,576   

08/15/2042, 2.750% (a)

     16,000,000        15,524,160   

U.S. Treasury Notes

    

09/15/2017, 1.000% (a)

     8,000,000        8,041,872   

09/30/2017, 0.625% (a)

     25,000,000        24,951,900   
    

 

 

 

TOTAL GOVERNMENT & AGENCY OBLIGATIONS

(Cost $83,360,494)

    

  

    82,981,236   
    

 

 

 
     Shares     Value  

 

 

SHORT-TERM INVESTMENTS 12.08%

  

Money Market Fund 12.08%

  

 

BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.010% 7-day yield)

     80,547,764        80,547,764   
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS

(Cost $80,547,764)

  

  

    80,547,764   
    

 

 

 

Total Investments - 151.52%

(Cost $1,021,448,343)

  

  

    1,010,001,206   

Liabilities in Excess of Other
Assets - (51.52%) (h)

    

    (343,412,851
    

 

 

 

NET ASSETS - 100.00%

       $666,588,355   
    

 

 

 
SCHEDULE OF SECURITIES
SOLD SHORT (c)
   Shares     Value  

 

 

COMMON STOCKS (40.60%)

 

 

Consumer Discretionary (1.97%)

 

Hotels (0.71%)

    

MGM Resorts International

     (79,322     $(1,839,477

SCHEDULE OF SECURITIES

SOLD SHORT (c) (continued)

   Shares     Value  

 

 

Consumer Discretionary (continued)

  

Wynn Resorts, Ltd.

     (40,800     $(2,853,960)   
    

 

 

 
       (4,693,437)   
    

 

 

 

Internet & Catalog Retail (1.26%)

 

Expedia, Inc.

     (61,700     (8,409,710)   
    

 

 

 

TOTAL CONSUMER DISCRETIONARY

  

    (13,103,147)   
    

 

 

 

Consumer Staples (0.23%)

  

 

Carlsberg A/S - Class B

     (18,345     (1,503,877)   
    

 

 

 

Energy (6.45%)

    

Cheniere Energy, Inc.

     (33,100     (1,639,112)   

Core Laboratories NV

     (34,300     (3,990,119)   

Ensco PLC - Class A

     (438,100     (7,285,603)   

Helmerich & Payne, Inc.

     (75,500     (4,248,385)   

Nabors Industries, Ltd.

     (257,800     (2,588,312)   

National Oilwell Varco, Inc.

     (50,300     (1,893,292)   

Oil States International, Inc.

     (121,400     (3,643,214)   

Patterson-UTI Energy, Inc.

     (185,600     (2,763,584)   

Petroleo Brasileiro S.A. - Sponsored ADR

     (1,357,100     (6,622,648)   

Rowan Cos., PLC - A Shares

     (148,202     (2,916,615)   

Transocean, Ltd.

     (341,300     (5,402,779)   
    

 

 

 
       (42,993,663)   
    

 

 

 

Financials (9.20%)

 

 

Commercial Banks (6.73%)

 

Banco Bilbao Vizcaya Argentaria S.A. - Sponsored ADR

     (642,295     (5,536,583)   

Banco Santander S.A. - Sponsored ADR

     (824,900     (4,569,946)   

BNP Paribas S.A.

     (130,317     (7,918,931)   

Intesa Sanpaolo SpA

     (2,178,293     (7,588,502)   

Itau Unibanco Holding S.A. - Class H, Sponsored Preferred ADR

     (1,092,060     (7,480,611)   

Seven Bank, Ltd.

     (849,600     (3,900,542)   

UniCredit SpA

     (729,562     (4,717,307)   

United Overseas Bank, Ltd.

     (217,000     (3,149,125)   
    

 

 

 
       (44,861,547)   
    

 

 

 

Consumer Finance (1.95%)

 

Ally Financial, Inc.

     (111,000     (2,211,120)   

American Express Co.

     (147,134     (10,779,037)   
    

 

 

 
       (12,990,157)   
    

 

 

 

Real Estate Management & Development (0.52%)

  

China Resources Land, Ltd.

     (1,332,000     (3,480,118)   
    

 

 

 

TOTAL FINANCIALS

       (61,331,822)   
    

 

 

 
 

 

 

Annual Report  |  October 31, 2015

 

 

23


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

SCHEDULE OF SECURITIES

SOLD SHORT (c) (continued)

   Shares     Value  

 

 

Health Care (6.29%)

    

AbbVie, Inc.

     (46,000     $(2,739,300)   

Aetna, Inc.

     (14,814     (1,700,351)   

AmerisourceBergen Corp.

     (26,800     (2,586,468)   

ANI Pharmaceuticals, Inc.

     (138,600     (5,799,024)   

Bruker Corp.

     (218,900     (4,021,193)   

Eagle Pharmaceuticals, Inc.

     (56,100     (3,574,131)   

Express Scripts Holding Co.

     (45,200     (3,904,376)   

Horizon Pharma PLC

     (50,100     (787,572)   

Lannett Co., Inc.

     (28,100     (1,258,037)   

Mallinckrodt PLC

     (37,100     (2,436,357)   

Merck & Co., Inc.

     (44,500     (2,432,370)   

Pacira Pharmaceuticals, Inc.

     (19,400     (969,030)   

Teligent, Inc.

     (235,200     (1,709,904)   

UnitedHealth Group, Inc.

     (43,500     (5,123,430)   

Varian Medical Systems, Inc.

     (36,900     (2,897,757)   
    

 

 

 
       (41,939,300)   
    

 

 

 

Industrials (13.20%)

    

American Airlines Group, Inc.

     (114,580     (5,295,888)   

Caterpillar, Inc.

     (158,000     (11,532,420)   

Chicago Bridge & Iron Co. NV

     (263,300     (11,814,271)   

Deutsche Lufthansa AG

     (292,237     (4,315,845)   

easyJet PLC

     (176,523     (4,762,243)   

Emerson Electric Co., Inc.

     (78,800     (3,721,724)   

Flowserve Corp.

     (210,900     (9,777,324)   

International Consolidated

    

Airlines Group S.A.

     (453,177     (4,069,452)   

Keppel Corp., Ltd.

     (573,000     (2,895,881)   

Kone OYJ, B Shares

     (86,816     (3,709,857)   

Kuehne + Nagel International AG

     (29,100     (4,036,228)   

Metso OYJ

     (144,970     (3,550,201)   

Pentair PLC

     (64,900     (3,629,208)   

Rolls-Royce Holdings Entitlement - C Shares (d)

     (1,761     (3)   

Rolls-Royce Holdings PLC

     (19     (201)   

Rolls-Royce Holdings Preference - C Shares (d)

     (1,258     (2)   

Sandvik AB

     (570,868     (5,338,806)   

Triumph Group, Inc.

     (45,800     (2,133,364)   

WW Grainger, Inc.

     (35,200     (7,392,000)   
    

 

 

 
       (87,974,918)   
    

 

 

 

Information Technology (3.26%)

 

Corning, Inc.

     (199,400     (3,708,840)   

International Business Machines Corp.

     (48,340     (6,771,467)   

Nippon Electric Glass Co., Ltd.

     (758,000     (3,750,112)   

SCHEDULE OF SECURITIES

SOLD SHORT (c) (continued)

   Shares     Value  

 

 

Information Technology (continued)

  

Taiwan Semiconductor Manufacturing Co., Ltd. - Sponsored ADR

     (342,400     $(7,519,104)   
    

 

 

 
       (21,749,523)   
    

 

 

 

TOTAL COMMON STOCKS

(Proceeds $257,021,647)

  

  

    (270,596,250)   
    

 

 

 

EXCHANGE TRADED FUNDS (19.19%)

 

Health Care Select Sector SPDR ® Fund

     (151,600     (10,815,144)   

iShares ® MSCI Brazil Capped ETF

     (314,100     (7,183,467)   

iShares ® MSCI Emerging Markets ETF

     (336,865     (11,746,483)   

iShares ® MSCI South Korea Capped ETF

     (68,700     (3,735,906)   

iShares ® Nasdaq Biotechnology ETF

     (15,708     (5,112,326)   

iShares ® Russell 2000 ® ETF

     (242,300     (27,946,882)   

Market Vectors ® Oil Service ETF

     (249,100     (7,614,987)   

Market Vectors ® Semiconductor ETF

     (69,600     (3,773,016)   

SPDR ® S&P 500 ® ETF Trust

     (240,550     (50,017,561)   
    

 

 

 

TOTAL EXCHANGE TRADED FUNDS

(Proceeds $121,147,155)

  

  

    (127,945,772)   
    

 

 

 

PREFERRED STOCKS (0.44%)

  

Financials (0.44%)

    

Commercial Banks (0.44%)

  

 

Banco Bradesco S.A. - ADR

     (539,100     (2,932,704)   
    

 

 

 

TOTAL PREFERRED STOCKS

(Proceeds $3,036,400)

  

  

    (2,932,704)   
    

 

 

 

TOTAL SECURITIES SOLD SHORT

(Proceeds $381,205,202)

  

  

    $(401,474,726)   
    

 

 

 

 

(a)

Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of October 31, 2015, the aggregate market value of those securities was $782,851,931 representing 117.44% of net assets. (See Note 1 and Note 6)

(b)

Loaned security; a portion or all of the security is on loan as of October 31, 2015.

(c)

Non-income producing security.

(d)

Fair valued security; valued by management in accordance with procedures approved by the Fund’s Board of Trustees. As of October 31, 2015, these securities had an aggregate market value of $8,543,804 or 1.28% of total net assets.

 

 

 

24

 

 

www.cloughglobal.com


Table of Contents
Clough Global Opportunities Fund    Statement of Investments
  

 

October 31, 2015

 

 

(e)

Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of October 31, 2015, these securities had an aggregate market value of $29,634,155 or 4.45% of net assets.

(f)  

Floating or variable rate security - rate disclosed as of October 31, 2015.

(g)

This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

(h)

Includes cash which is being held as collateral for total return swap contracts or futures contracts.

 

 

 

FUTURES CONTRACTS

 

Description    Position    Contracts    Expiration
Date
   Underlying Face
Amount at Value
    Unrealized  
Appreciation  
 

Foreign Currency Contracts

             

Japanese Yen Currency Future

   Short    221    12/15/2015    $ (22,895,600   $ 43,457       
           

 

 

 
            $ (22,895,600   $ 43,457       
           

 

 

 

TOTAL RETURN SWAP CONTRACTS

 

Counter Party  

Reference

Entity/Obligation

  Notional
Amount
   

Floating Rate

Paid by the Fund

    Floating
Rate Index
    Termination
Date
 

Net Unrealized  

Appreciation  

 

 

 

Morgan Stanley

  Bharti Infratel, Ltd.   $ 2,303,178        30 bps + 1D FEDEF        1 D FEDEF      12/27/2016   $ 746,762     

Morgan Stanley

  Housing Development Finance Corp.     2,767,835        30 bps + 1D FEDEF        1 D FEDEF      12/27/2016     153,147     

Morgan Stanley

  LG Electronics, Inc.     (2,878,931)        50 bps - 1D FEDEF        1 D FEDEF      10/30/2017     14,890     

Morgan Stanley

  Zhengzhou Yutong Bus Co., Ltd.     450,817        55 bps + 1D FEDEF        1 D FEDEF      01/05/2017     52,987     

 

 
    $ 2,642,899            $ 967,786     

 

 
Counter Party  

Reference

Entity/Obligation

  Notional
Amount
   

Floating Rate

Paid by the Fund

    Floating
Rate Index
    Termination
Date
  Net Unrealized  
Depreciation  
 

 

 

Credit Suisse

  Bharti Airtel, Ltd.   $ 3,515,155        75 bps + 1M LIBOR        1 M LIBOR      11/30/2017   $ (235,655 )   

Morgan Stanley

  Hon Hai Precision Industry Co., Ltd.     (1,944,975)        50 bps - 1D FEDEF        1 D FEDEF      05/04/2017     (68,138 )   

Credit Suisse

  Larsen & Toubro, Ltd.     2,538,839        75 bps + 1M LIBOR        1 M LIBOR      11/30/2017     (531,038 )   

Credit Suisse

  Mahindra & Mahindra, Ltd.     779,669        75 bps + 1M LIBOR        1 M LIBOR      11/30/2017     (11,710 )   

Morgan Stanley

  Mahindra & Mahindra, Ltd.     3,220,781        30 bps + 1D FEDEF        1 D FEDEF      12/27/2016     (423,268 )   

Credit Suisse

  Shriram Transport Finance Co., Ltd.     3,670,385        75 bps + 1M LIBOR        1 M LIBOR      11/30/2017     (520,510 )   

Credit Suisse

  Ultratech Cement, Ltd.     4,196,269        75 bps + 1M LIBOR        1 M LIBOR      11/30/2017     (136,252 )   

 

 
    $ 15,976,123            $ (1,926,571 )   

 

 
    $   18,619,022            $ (958,785 )   

 

 

See Notes to the Financial Statements.

 

 

Annual Report  |  October 31, 2015

 

 

25


Table of Contents
Clough Global Funds    Statement of Investments
  

 

October 31, 2015

 

Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

AB - Aktiebolag is the Swedish equivalent of the term corporation

ADR - American Depositary Receipt

AG - Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders

A/S - Aktieselskab, Joint Stock Company in Denmark

bps - Basis Points

ETF - Exchange Traded Fund

1M LIBOR - London Interbank Offered Rate (Monthly)

LLC - Limited Liability Corporation

Ltd. - Limited

MSCI - Morgan Stanley Capital International

NV - Naamloze Vennootschap (Dutch: Limited Liability Company)

OYJ - Osakeyhtio is the Finnish equivalent of a public limited company.

PLC - Public Limited Company

S.A. - Generally designates corporations in various countries, mostly those employing the civil law.

SpA - Societa` Per Azioni is an Italian shared company

S&P - Standard & Poor’s

SPDR - Standard & Poor’s Depositary Receipt

For Fund compliance purposes, each Fund’s industry classifications refer to any one of the industry sub-classifications used by one or more widely recognized market indexes, and/or as defined by each Fund’s management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets. These industry classifications are unaudited.

 

 

See Notes to the Financial Statements.

 

 

26

 

 

www.cloughglobal.com


Table of Contents
Clough Global Funds    Statements of Assets and Liabilities
  

 

October 31, 2015

 

     Clough Global      Clough Global      Clough Global  
      Allocation Fund      Equity Fund      Opportunities Fund  

ASSETS:

        

Investments, at value (Cost - see below)*

   $ 242,812,877         $ 402,429,507       $ 1,010,001,206     

Cash

     2,135,812           2,179,946         7,306,397     

Foreign Currency, at value (Cost $735,617, $2,273,674 and $4,493,539)

     736,717           2,275,506         4,497,966     

Deposit with broker for futures contracts

     156,000           261,000         663,000     

Deposit with broker for securities sold short

     97,542,826           169,253,415         400,761,504     

Deposit with brokers for total return swap contracts

     6,003,637           10,555,207         24,821,450     

Unrealized appreciation on total return swap contracts

     228,337           364,280         967,786     

Dividends receivable

     170,071           243,540         538,716     

Interest receivable

     307,204           241,677         1,238,432     

Receivable for investments sold

     12,462,834           19,634,107         49,626,961     

Total Assets

     362,556,315           607,438,185         1,500,423,418     

LIABILITIES:

        

Loan payable

     93,300,000           156,000,000         388,900,000     

Interest due on loan payable

     8,026           13,421         33,457     

Variation margin payable

     18,525           30,994         78,731     

Securities sold short (Proceeds $91,735,378, $160,248,810 and $381,205,202)

     96,595,895           167,759,912         401,474,726     

Payable for investments purchased

     9,068,716           15,158,016         39,162,001     

Unrealized depreciation on total return swap contracts

     469,734           953,957         1,926,571     

Dividends payable - short sales

     79,573           132,416         329,722     

Interest payable - margin account

     61,735           119,026         255,094     

Accrued investment advisory fee

     215,032           464,340         1,268,286     

Accrued administration fee

     87,549           165,099         405,852     

Accrued trustees fee

     148           148         148     

Other payables and accrued expenses

     475           65,209         475     

Total Liabilities

     199,905,408           340,862,538         833,835,063     

Net Assets

   $ 162,650,907         $ 266,575,647       $ 666,588,355     
   

Cost of Investments

   $   242,590,055         $   397,934,581       $   1,021,448,343     
   

COMPOSITION OF NET ASSETS:

        

Paid-in capital

   $ 165,478,928         $ 263,692,992       $ 712,547,900     

Overdistributed net investment income

     (2,560,125)           (7,253,121)         (16,052,685)     

Accumulated net realized gain on investment securities, futures contracts, securities sold short, written options, total return swap contracts and foreign currency transactions

     4,602,204           13,726,815         2,730,657     

Net unrealized depreciation in value of investment securities, futures contracts, securities sold short, total return swap contracts and translation of assets and liabilities denominated in foreign currency

     (4,870,100)           (3,591,039)         (32,637,517)     

Net Assets

   $ 162,650,907         $ 266,575,647       $ 666,588,355     
   

Shares of common stock outstanding of no par value, unlimited shares authorized

     10,392,606           17,653,305         51,574,059     
   

Net asset value per share

   $ 15.65         $ 15.10       $ 12.92